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Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its

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Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines. in cluding all of the carburetors. An outside suppliar thas offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $36 per unit. To evoluate this offer. Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally. Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carbur etors, what would be the finanelat advantage (disadvantage) of buying 20,000 carburetors from the outside suppliet? 2 should the outside suppliers ofler be occepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limuted, could use the freed capacity to launch a new product The segment margin of the new product would be $200000 per year Given this new assumption what would be the financial advantoge

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